Flash News
infosawit

Indonesia Wins Palm Oil Trade Dispute at WTO, EU Found Discriminatory



Doc. Special
Indonesia Wins Palm Oil Trade Dispute at WTO, EU Found Discriminatory

InfoSAWIT, JAKARTA – The Indonesian government has recorded an important victory in its palm oil trade dispute with the European Union (EU) at the World Trade Organization (WTO) Dispute Settlement Body (DSB). In the panel's decision report circulated on January 10, 2025, the EU was found to have discriminated against palm oil-based biofuels from Indonesia.

Trade Minister Budi Santoso expressed appreciation for the ruling in a press statement in Semarang, Central Java, on Thursday (January 10). "The Indonesian government welcomes the WTO Panel's decision in this palm oil trade dispute. We hope that in the future, other trading partner countries will not impose similar policies that could hinder global trade flows," Budi stated, as reported by InfoSAWIT from Antara on Friday (January 17, 2025).

The WTO panel stated that the EU's policy provided less favorable treatment to palm oil-based biofuels compared to similar products from Europe, such as rapeseed and sunflower. Additionally, the EU was found to favor similar products from other countries, such as soybeans.

The panel also found that the EU failed to adequately review data related to the high ILUC-risk category for palm oil. The process of developing and implementing criteria and certification procedures for low ILUC-risk in the Renewable Energy Directive (RED) II was also deemed to have shortcomings.

As a result, the EU is required to adjust its Delegated Regulation policy, which was found to violate WTO rules. "This policy reflects protectionism disguised as environmental sustainability," added Budi.

Indonesia filed a complaint against the EU's policy in December 2019 under case number DS593: European Union-Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels. The complaint includes the RED II policy, the EU's Delegated Regulation, and France's policy limiting the consumption of palm oil-based biofuels to 7 percent and implementing a gradual phase-out.

According to WTO regulations, if there are no objections within 20-60 days, the panel's report will be adopted and binding for both Indonesia and the EU. The EU must take immediate steps to comply with the decision.

The Indonesian government will monitor changes in EU regulations to ensure compliance with the WTO DSB recommendations, particularly regarding the discrimination that Indonesia has won. If necessary, Indonesia will request a compliance panel to ensure the implementation of the ruling.

Simultaneously, Indonesia continues to seek to open market access for palm oil products in the EU through various negotiation forums. "This success is the result of proactive steps and intensive coordination among various stakeholders, including relevant ministries and agencies, industry players, palm oil associations, and the legal team of the Indonesian government," concluded Budi. (T2)


READ MORE ON GOOGLE NEWS.